Correlation Between Beston Global and Aneka Tambang
Can any of the company-specific risk be diversified away by investing in both Beston Global and Aneka Tambang at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Beston Global and Aneka Tambang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beston Global Food and Aneka Tambang Tbk, you can compare the effects of market volatilities on Beston Global and Aneka Tambang and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Beston Global with a short position of Aneka Tambang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beston Global and Aneka Tambang.
Diversification Opportunities for Beston Global and Aneka Tambang
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Beston and Aneka is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Beston Global Food and Aneka Tambang Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aneka Tambang Tbk and Beston Global is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Beston Global Food are associated (or correlated) with Aneka Tambang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aneka Tambang Tbk has no effect on the direction of Beston Global i.e., Beston Global and Aneka Tambang go up and down completely randomly.
Pair Corralation between Beston Global and Aneka Tambang
Assuming the 90 days trading horizon Beston Global Food is expected to generate 7.43 times more return on investment than Aneka Tambang. However, Beston Global is 7.43 times more volatile than Aneka Tambang Tbk. It trades about 0.01 of its potential returns per unit of risk. Aneka Tambang Tbk is currently generating about -0.01 per unit of risk. If you would invest 2.60 in Beston Global Food on August 25, 2024 and sell it today you would lose (2.30) from holding Beston Global Food or give up 88.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beston Global Food vs. Aneka Tambang Tbk
Performance |
| Timeline |
| Beston Global Food |
| Aneka Tambang Tbk |
Beston Global and Aneka Tambang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beston Global and Aneka Tambang
The main advantage of trading using opposite Beston Global and Aneka Tambang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beston Global position performs unexpectedly, Aneka Tambang can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Aneka Tambang will offset losses from the drop in Aneka Tambang's long position.| Beston Global vs. Aneka Tambang Tbk | Beston Global vs. BHP Group Limited | Beston Global vs. Commonwealth Bank of | Beston Global vs. Commonwealth Bank of |
| Aneka Tambang vs. Event Hospitality and | Aneka Tambang vs. Gold Road Resources | Aneka Tambang vs. Treasury Wine Estates | Aneka Tambang vs. Apiam Animal Health |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |